Which One of the Following Statements Concerning Sales and Operations

question 59

Multiple Choice

Which one of the following statements concerning sales and operations planning alternatives is BEST?

• A)Building anticipation inventory during the slack season is a demand management option a firm can follow to satisfy seasonal demand patterns.
• B)Adjusting workforce levels is an attractive reactive alternative when the cost of training and unemployment compensation is high.
• C)Creating anticipation inventory has the advantage of increasing customization.
• D)Using overtime is an undesirable option when the overtime wage premium is high and sustained levels of top worker productivity are important.

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Definitions:

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or failure of a dam.

Expected Utility Maximizer

An economic principle that assumes individuals choose to maximize a utility function that represents their preferences under conditions of uncertainty.

Utility Function

An expression used in economics to model satisfaction or happiness derived from consuming goods and services, measuring consumer preferences.

Wealth

The total value of all financial assets and resources owned by an individual or entity, minus any liabilities.